These initiatives aim to streamline regulatory processes, facilitate retail investment, and bolster transparency in the fintech landscape, garnering praise from industry experts. Read here:
In a visionary move, the Reserve Bank of India (RBI) has launched three pioneering initiatives—PRAVAAH portal, RBI Retail Direct app, and FinTech Repository—aimed at enhancing regulatory processes, facilitating retail investment, and bolstering transparency in the fintech landscape. Industry experts laud these initiatives as transformative steps towards a robust financial ecosystem in India.
The PRAVAAH portal, an acronym for Platform for Regulatory Application, Validation, and Authorization, represents a significant leap towards digitizing and centralizing the regulatory application process. By offering a secure online platform for individuals and entities to seek authorizations, licenses, or regulatory approvals from the RBI, PRAVAAH promises to streamline and simplify the often complex regulatory procedures.
Nilay Patel, Founder & Managing Director of Easy Pay, highlighted the impact of PRAVAAH, noting, “The launch of PRAVAAH and the RBI Retail Direct mobile app marks a significant step forward in the regulatory landscape. By enabling easy online applications for various regulatory approvals, PRAVAAH will enhance operational efficiency, reduce processing times, and foster a more conducive environment for innovation and growth in the fintech sector.”
The RBI Retail Direct mobile application is set to revolutionize retail investment by enabling investors to buy and sell government securities (G-Secs) directly from their smartphones. With user-friendly interfaces and accessibility on both Android and iOS platforms, the app aims to democratize access to the bond market, empowering retail investors to participate in primary and secondary market transactions with ease and convenience.
Sundeep Mohindru, Promoter & Director of M1xchange, added, “We commend the RBI’s launch of the PRAVAAH portal, FinTech Repository, and EmTech Repository. These initiatives are pivotal for a robust financial sector in India. The enhanced regulatory transparency and comprehensive data on FinTech and emerging technologies foster a secure and innovative ecosystem.”
Complementing these initiatives is the FinTech Repository, a comprehensive data repository aimed at providing valuable insights into the Indian fintech landscape. By collating data on fintech firms, their activities, and technology adoption within regulated institutions, the repository promises to enhance regulatory understanding and inform policy formulation.
Ankit Ratan, Co-founder & CEO of Signzy, praised the RBI’s foresight in launching these initiatives, emphasizing their importance in building a future-proof financial sector in India. “The creation of comprehensive data repositories is instrumental in shaping regulatory frameworks and driving innovation,” he noted, adding that the RBI encourages a collaborative environment where stakeholders from both fintechs and regulated entities can leverage the repository’s insights to strengthen security practices and foster innovation.
The EmTech Repository, a related initiative focusing on technology adoption within RBI-regulated entities such as banks and NBFCs, underscores the central bank’s commitment to staying abreast of emerging technologies.
By providing insights into the adoption of technologies like AI, ML, Cloud Computing, and DLT, the EmTech Repository aims to facilitate informed decision-making and promote the responsible integration of technology within the financial sector.
Yashwant Lodha, Co-Founder of PayNearby, remarked on the evolving technology landscape in India and the challenges it brings. He highlighted the role of the Fintech Repository in ensuring seamless information transfer between the fintech industry and regulatory authorities, thereby boosting innovation and enhancing customer experience.
“The Fintech ‘Yellow pages’ will ensure seamless transfer of information between the fintech industry and the regulatory authority while allowing the latter to tailor regulations based on the challenges faced by the industry,” he said.
Managed by the Reserve Bank Innovation Hub (RBIH), both the FinTech and EmTech Repositories are poised to become invaluable resources for policymakers and industry participants alike. These initiatives reassert the RBI’s role as a proactive steward of India’s financial stability, paving the way for a secure and flourishing financial future.